Filing Flows › Sonic Automotive (SAH) › Takeover & LBO
Is Sonic Automotive (SAH) a takeover target?
A leveraged buyout at today's price plus 30% ($81.64 a share) would return about 17% a year to a private-equity buyer over 5 years; the most a buyer could pay for a 20% return is $73.06 a share (16% against today's $62.80). Historically 4.1% of companies with its figures were bought within a year (0.82× the average).
The buyout, step by step
| Entry | Amount | How |
|---|---|---|
| Offer price a share | $81.64 | today's $62.80 plus 30% |
| × shares | 32.2 million | |
| = Equity value | $2.6B | |
| + Debt refinanced | $1.7B | |
| − Cash | $10.7M | |
| = Enterprise value | $4.4B | 6.6× EBITDA of $659M |
| Fees | $87.4M | 2% of the price |
| New debt | $2.8B | 4.3× EBITDA at 7.65% a year; the limit that binds: 65% of the price |
| Buyer's own money | $1.6B | 36% of the cost |
5 years under the buyer
| Year | Revenue | EBITDA | Interest | Free cash flow | Debt left |
|---|---|---|---|---|---|
| Year 1 | $15.8B | $672M | $217M | $349M | $2.5B |
| Year 2 | $16.1B | $687M | $190M | $381M | $2.1B |
| Year 3 | $16.6B | $704M | $161M | $416M | $1.7B |
| Year 4 | $17.0B | $724M | $129M | $456M | $1.2B |
| Year 5 | $17.5B | $745M | $94.6M | $499M | $738M |
The exit and the buyer's return
| Exit | Amount | |
|---|---|---|
| Exit multiple | 5.7× EBITDA | today's trading multiple, before any premium |
| Enterprise value at exit | $4.3B | |
| − Debt left | $738M | |
| = Buyer's equity | $3.5B | |
| Money multiple | 2.18× | on $1.6B put in |
| Buyer's yearly return (IRR) | 16.8% |
Price against return
What the buyer makes at other premiums over today's $62.80; the IRR reaches 20% at $73.06 a share.
| Premium | Price a share | Buyer's IRR |
|---|---|---|
| 10% | $69.08 | 21.5% |
| 20% | $75.36 | 19.1% |
| 30% | $81.64 | 16.8% |
| 40% | $87.92 | 14.6% |
| 50% | $94.20 | 12.3% |
The figures used
| Figure | Amount | |
|---|---|---|
| Revenue, last 12 months | $15.5B | |
| EBITDA, last 12 months | $659M | 4.3% of revenue |
| Depreciation and amortization | $159M | |
| Capital spending | $38.7M | |
| Debt | $1.7B | |
| Cash | $10.7M | |
| Share price | $62.80 | on Nov 6, 2026 |
Fixed rules, the same as the interactive view's starting point: the shares are bought at today's price plus 30%, the company's debt is refinanced and fees take 2%. New debt is the least of 5.5× EBITDA, 65% of the price and the amount whose interest EBITDA covers 2 times, at 7.65% a year (SOFR 3.89% plus the high-yield B spread 3.26% plus 0.5%, rates of Oct 15, 2026). Revenue grows 2.0% in the first year — the company's own rate, held between −3% and +8% — fading to 3% by year 5; the EBITDA margin, depreciation and capital spending stay at today's share of revenue; working capital takes 10% of each year's added revenue; tax is 12% of profit after interest. Every dollar of free cash flow repays debt. After 5 years the buyer sells at today's multiple of EBITDA.
What a takeover could cost
Takeovers on record paid a median premium of 32.5% over the share price before the deal (the middle half 20% to 51.8%), according to the 1,437 merger proxies and tender-offer responses on EDGAR that state a premium. At the median, Sonic Automotive would cost about $83.21 a share, $2.7B for all its shares.
| Premium | % | Price a share | All shares |
|---|---|---|---|
| Low end (a quarter of deals paid less) | 20% | $75.36 | $2.4B |
| Median | 32.5% | $83.21 | $2.7B |
| High end (a quarter paid more) | 51.8% | $95.33 | $3.1B |
The odds, from history
Historically 4.1% of companies with its figures were bought within a year (0.82× the average). Its figures put it in decile 4 of 10 (10 = the most likely to be bought). The odds come from a model of every merger proxy, tender-offer response and going-private statement filed on EDGAR since 2011, set against each company's size, margins, debt, cash flow and growth the year before.
Sonic Automotive's latest quarter
Sonic Automotive, Q2 2026: revenue $3.9B (+8% year over year), operating margin 3.3%, net earnings $57.4M, operating cash flow −$100M. The chart follows the revenue to costs, profit and cash.
Questions
Is Sonic Automotive being acquired?
No headline, 8-K or 13D about a sale is on file in the last year.
Could private equity buy Sonic Automotive?
A leveraged buyout at today's price plus 30% ($81.64 a share) would return about 17% a year to a private-equity buyer over 5 years; the most a buyer could pay for a 20% return is $73.06 a share (16% against today's $62.80).
What would a takeover of Sonic Automotive cost?
Takeovers on record paid a median premium of 32.5% over the share price before the deal (the middle half 20% to 51.8%), according to the 1,437 merger proxies and tender-offer responses on EDGAR that state a premium. At the median, Sonic Automotive would cost about $83.21 a share, $2.7B for all its shares.
Updated Nov 8, 2026. Read automatically from SEC filings and public data; errors are possible. Not investment advice.